The British overseas territory of Gibraltar has published a draft law to regulate tokenized assets. The inspiration came from an unusual source: El Salvador.
Here is what happened, what it means, and why it matters.
The facts
In April 2026, Nigel Feetham, Gibraltar’s Minister for Justice, Trade and Industry, traveled to El Salvador as a guest of the National Commission for Digital Assets (CNAD). He met with CNAD President Juan Carlos Reyes and Salvadoran government officials to discuss digital asset regulation.
Gibraltar’s government confirmed the visit in an official press release, stating the purpose was to “exchange views and discuss areas of shared interest, particularly in relation to the development, innovation and regulation of digital asset ecosystems.”
Two weeks later, Gibraltar published the Protected Cell Companies (Amendment) Bill 2026, a law that allows tokenized shares in investment funds.
What Feetham said
At the Stablecoin Conference 2026 in Mexico City, Feetham acknowledged the influence of El Salvador’s regulatory framework on Gibraltar’s draft law.
“I believe El Salvador is truly at the forefront of the latest developments in digital assets.”
He explained that his team worked with regional specialists to develop Gibraltar’s regulatory framework, drawing on the experience of El Salvador’s Digital Assets Issuance Law (LEAD) — a comprehensive law passed in 2023 that covers tokenization of debt, bonds, and stocks.
However, Feetham was clear that Gibraltar chose a different approach:
“I took the position that I did not want to do that [like El Salvador] at first. I wanted to move forward with tokenization in a structured and measured way.”
Gibraltar’s bill limits tokenization to shares of Experienced Investor Funds — a category for sophisticated investors — structured as protected cell companies. It is a more cautious first step, tokenizing fund shares rather than directly tokenizing underlying assets.
What this tells us about El Salvador
El Salvador passed the LEAD in 2023 and established the CNAD as its regulatory authority. Since then, it has built real experience enforcing a comprehensive digital asset framework.
Now, a British overseas territory with a long history in international finance has traveled to El Salvador, studied that framework, and publicly acknowledged it as a reference.
A small developing nation built a regulatory model. An established financial center came to learn from it. That does not happen often.
What Gibraltar is doing next
The bill is scheduled for parliamentary debate next month and has support in principle from opposition lawmakers. Feetham expects approval with a broad majority.
Beyond tokenization, Gibraltar is also:
- Drafting regulation for DeFi support and audit services
- Licensing prediction market operators
- Exploring the development of its own stablecoin
Sources
| Source | URL |
|---|---|
| Gov. of Gibraltar — Feetham’s visit to El Salvador (press release) | https://www.gibraltar.gov.gi/press-releases/minister-feetham-visits-el-salvador-2642026-11891 |
| Gov. of Gibraltar — Tokenization Bill announcement (press release) | https://www.gibraltar.gov.gi/press-releases/government-of-gibraltar-announces-landmark-legislation-enabling-tokenised-fund-shares-3012026-11929 |
| GBC News — Feetham at Consensus Hong Kong | https://www.gbc.gi/news/minister-for-trade-and-industry-outlines-plans-to-maintain-cutting-edge-in-crypto-space |
| Chambers.com — Legal analysis of the Bill | https://chambers.com/articles/gibraltar-s-protected-cell-companies-amendment-bill-2026 |
| Diario El Salvador — Original article (June 18, 2026) | https://diarioelsalvador.com/dedinero/gibraltar-espera-aprobar-ley-de-tokenizacion-inspirada-en-el-salvador/808862 |
| Europa Sur — Gibraltar’s digital asset strategy | https://www.europasur.es/gibraltar/nuevo-negocio-stablecoins-pagos-internacionales-amparo-tratado_0_2007006336.html |
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